Ukraine legalized Bitcoin | Nasdaq

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Ukraine’s parliament has passed a law that legalizes and regulates bitcoin in the country, providing official clarification on the asset that was previously unclear.

Today, the Ukrainian parliament passed a law that legalizes and regulates bitcoin in the country. The bill drafted in 2020 was passed with a total of 276 lawmakers supporting the law, and only six against.

The main purpose of this bill appears to provide clarity on the asset and protect those who own bitcoin, as it was previously neither legal nor illegal in the country. While not illegal, Ukrainian law enforcement has treated bitcoin and other virtual currencies as a scam, resulting in searches of bitcoin companies, according to Kyiv Post.

Now that this bill is passed, the courts can now properly protect individuals and businesses as it provides tax clarity and officially allows bitcoin businesses to operate in the country. It also sets out some guidelines on how Ukraine can try to further regulate bitcoin in the future.

This bill gives citizens permission to own and trade bitcoin and other cryptocurrencies on exchanges. The bill also clarifies wallets and private keys.

Parliament is expected to adopt and amend its tax and civil codes before the end of the year to officially open the market to businesses and investors, according to a spokesperson for the Ministry of Digital Transformation who spoke to the Kyiv Post.

It is important to note that although bitcoin is now legal in Ukraine, this does not mean that BTC is legal tender in the country. It will require a whole other bill to make that happen in the future.

This is great news and certainly a step in the right direction for the country to finally adopt a full bitcoin standard similar to El Salvador. An important thing to note here is that for bitcoin to thrive fully in a country, it is important not to stamp it with too many laws or regulations, which would end up stifling innovation. Bitcoin is currently very nascent and appears to be on the way to becoming the world’s reserve currency, it would be a shame to see countries not capitalize on the opportunity that presents itself due to excessive regulation.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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